Companies Act Section 432

Companies Act, Section 432: Right to Legal Representation Before the Tribunal and Appellate Tribunal

Section 432 of the Companies Act, 2013 guarantees that any party involved in a matter before the National Company Law Tribunal (NCLT) or the National Company Law Appellate Tribunal (NCLAT) has the freedom to choose how they wish to be represented during the proceedings. 

This provision ensures fairness, accessibility, and flexibility in the adjudication process.

1. Right to Appear Personally

A party to a proceeding has the complete right to:

Appear in person and present their case themselves. Make submissions directly before the Tribunal.

This ensures that individuals, especially those who may not be able to afford professional representation, are not denied access to justice.

2. Right to Authorize a Representative

If a party prefers professional assistance, they may authorize one or more qualified persons to represent them. The provision permits representation by:

Chartered Accountants (CA), Company Secretaries (CS), Cost Accountants (CMA), Legal Practitioners (Advocates enrolled with the Bar Council), any other person authorized by the party and acceptable to the Tribunal.

This inclusion of professionals beyond lawyers is significant because NCLT and NCLAT deal with:

Complex financial issues, Company law compliance, Accounting and restructuring matters, Insolvency and corporate financial disputes.

In such cases, technical and commercial expertise is often equally crucial as legal knowledge.

3. Flexibility in Representation

This section provides flexibility by allowing multiple representatives based on the nature of the case.

Professionals best suited to explain financial records, legal disputes, or technical corporate matters.

Parties to strategically choose their representation depending on requirements. This supports a more efficient and informed adjudication process.

4. Importance of Section 432 in Corporate Legal Proceedings

This right is essential because corporate law matters often involve technicalities requiring specialized expertise.

Fair representation strengthens the principles of natural justice. It ensures that every party, whether a large corporation or an individual shareholder, has equal opportunity to present its case.

It enhances faith in the Tribunal system by ensuring access to qualified advocates and professionals by widening the category of eligible representatives. The law acknowledges the multidisciplinary nature of corporate disputes.